The Hardwood Federation produces a “D.C. Cheat Sheet” newsletter to keep the industry up-to-date on the latest news from Washington D.C. Check out the February 6th edition below and sign up to receive your copy.
China Takes U.S. to Trade Court
Trade continues to be the number one topic of discussion in Washington, D.C. Although there is temporary relief that Canadian and Mexican tariffs have been put on hold, the situation with China continues to evolve. An anticipated call between the U.S. and Chinese leaders did not materialize on Tuesday. On Wednesday, February 5, China filed a complaint against the U.S. with the World Trade Organization (WTO), an independent body that administers rules governing international trade, outlining a list of grievances over the 10 percent tariff imposed on Chinese goods. In addition to claiming that the U.S. is making “unfounded allegations” with respect to the trafficking of fentanyl, China states that U.S. sanctions violate its status as a “most favored nation” trading partner. The Chinese further characterize U.S. action as “protectionist and discriminatory,” in violation of WTO rules. It’s not clear at this time how the U.S. will respond to the complaint, if at all. The Hardwood Federation will continue to keep you posted on developments.
Senate Takes Lead as Tax Legislation Stalls in House
Restoring key business tax benefits that have been allowed to lapse or begin phasing out, including 100 percent bonus depreciation and extending the 20 percent small business deduction, are key priorities for the 119th Congress. But a clear path forward for tax legislation has remained unclear as House Republicans have struggled to gain support from budget hawks and failed to kick off the process. Known as “budget reconciliation,” the procedure would allow the tax package to move to the Senate floor with a simple majority vote. Stepping into the vacuum, Senate Budget Committee Chairman Lindsey Graham (R-SC) has announced that the Senate will begin the process next week and move two separate bills, one focusing on the border and another on tax, bypassing House Speaker Johnson’s (R-LA) plan to move a single package. The Senate’s action doesn’t preclude House lawmakers from crafting their own bill but gives momentum to the Senate strategy to move two separate bills.
Senate Moving Key Administration Nominations
The U.S. Senate has been active the last two weeks processing nominations to fill President Trump’s cabinet. Last week former Wisconsin Representative Sean Duffy was confirmed to be Transportation Secretary. During his time in the House, Duffy led on the Safe Routes Act—truck weight reform legislation that would allow trucks travelling at the maximum gross vehicle weight on state roads to travel at that weight on the federal interstate highway system. We hope he will support pilot programs that may be implemented through executive action. Secretary Duffy is also close personal friends with several in our sector. The Senate also confirmed Lee Zeldin, a former New York congressman, to lead the Environmental Protection Agency. Zeldin was not known for being active on or leading environmental legislation during his time in Congress, but we hope to make progress on EPA recognizing the carbon neutrality of biomass, among other issues.
At the Department of Interior, the Senate confirmed former North Dakota Governor Doug Burgum. He will oversee Endangered Species Act implementation, which is critical to hardwoods. Jamieson Greer is up for U.S. Trade Representative. The Senate Finance Committee is conducting his hearing today, with a vote still pending. Also notable is the Senate Health, Education, Labor and Pensions (HELP) Committee hearing, scheduled for February 12, to question former Rep. Lori Chavez-DeRemer to be Secretary of Labor. She was the Republican lead in the House on the Jobs in the Woods Act, a bill to support workforce training for jobs in forestry and in sawmilling. This is one nomination that will be interesting to watch as she is expected to secure several democrat votes for her past support for the PRO Act in the House—a pro-labor union measure. On the USDA front, Brooke Rollins, a former White House advisor during Trump’s first term, received unanimous approval from the Ag Committee on Monday and moves to the Senate floor to clear her nomination.
Save the Date – Hardwood Federation Fly-In
May 13-15, 2025 in Washington, D.C.
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Source: Hardwood Federation